Coops insurance, also known as condo insurance, is designed specifically for residents of co-op and condo buildings. This type of insurance differs from homeowners policies, in that your building is not owned by you.
A cooperative is usually made up of shares or individual units. The shares of the property are bought by a building owner, corporation or management company. They then lease them to the individual unit owners that have equity in their units.
The corporation also buys a master coverage that covers all common areas and the building. These policies offer property and general liability coverage to protect corporations from financial losses.
The master policy also includes a separate, individual policy purchased by every unit owner. The policy is confusing, so working with an insurance agent who can help you understand the system will be helpful.
You'll want find out if your co-op, condominium or apartment is located in an area with a high risk of flooding. This coverage is not unusual for New York City buildings.
Ask about coverage for earthquakes and back-up water, which will help you cover losses due to flooding or blocked drains. These risks are not covered under a standard homeowner's policy. They are therefore worth paying the extra amount for.
A home business policy will also cover your equipment, workstations and other items if you have a small hobby or professional business that you run from your condo unit or co-op.
Co-op homeowners can also opt to purchase umbrella liability insurance, which offers a high amount of liability protection in one policy. This is especially helpful if you have expensive equipment, and cannot afford to lose it if it gets damaged or stolen.
A good co-op insurance policy can save you a lot of headache and hassle if you ever have to file a claim. It can help cover loss of use in your condo or co-op, replacement cost value on items like kitchen appliances and furniture, and personal liability if you injure someone else while on the property.
USAA offers a quote on co-op insurance. The customer service is excellent and can assist you in finding the right policy to suit your needs.
Compare the co-op policies and prices of several companies when you are shopping around for one. This will help you find the lowest rate. Consider the Better Business Bureau rating of each company, and what previous customers had to say about their experience.
In general, the cost of a co-op insurance policy depends on the location of the building. For instance, a city co-op can be more pricey than a suburban co-op. You can expect to pay the same amount for co-op insurance as you would for standard homeowners coverage.